ITR-6 Form for AY 2025–26: Expert Guide to Key Changes, Applicability, and Filing Instructions

The Income Tax Department has notified ITR-6 for the Assessment Year (AY) 2025–26 through Notification No. 44/2025 dated May 6, 2025. This form is specifically designed for ITR Filing of companies, excluding those claiming exemption under Section 11 of the Income Tax Act, 1961.

With the growing emphasis on transparency, traceability, and alignment with amendments introduced in the Finance Act, 2024, ITR-6 now comes with a set of revised reporting requirements. These include detailed capital gain disclosures, recognition of sector-specific presumptive taxation schemes, and enhanced reporting standards under business and TDS schedules.

This article offers a thorough breakdown of ITR-6’s applicability, latest changes, and important compliance requirements for AY 2025–26.

Who Should File ITR-6?

ITR-6 must be filed by:

• All companies registered under the Companies Act, 2013 (or earlier), except those seeking exemption under Section 11.

• Domestic companies including private limited companies, public limited companies, and startups (not registered as LLPs).

• Foreign companies operating in India and earning income that is taxable under Indian laws.

This form is to be submitted electronically under digital signature by authorized signatories.

Who Is Not Eligible to File ITR-6?

ITR-6 is not applicable to:

• Companies claiming exemption under Section 11, i.e., entities established for charitable or religious purposes.

• LLPs, partnerships, proprietorships, or individuals. These entities must use ITR-5, ITR-3, or other appropriate forms.

• Trusts, societies, or NGOs, which must file ITR-7 if exempt under relevant provisions.

Key Updates in ITR-6 for AY 2025–26

1. Capital Gains Reporting: Bifurcation Required

To align with the amendments introduced under the Finance Act, 2024, Schedule CG (Capital Gains) now requires reporting of gains to be split based on the date of transfer:

• Capital gains accrued before July 23, 2024

• Capital gains accrued on or after July 23, 2024

This bifurcation is critical for applying the correct tax rate and ensuring compliance with revised tax provisions.

2. Reporting Capital Loss on Share Buybacks

ITR-6 now allows companies to report capital loss from share buyback transactions, provided the corresponding dividend income is offered to tax under the head ‘Income from Other Sources’. This rule is applicable for buybacks initiated on or after October 1, 2024.

This provision provides clarity for corporate taxpayers who were earlier unable to claim losses from buybacks under certain conditions.

3. Introduction of Section 44BBC: Cruise Business Presumptive Taxation

The new form references Section 44BBC, which provides a presumptive taxation scheme for cruise-related businesses. Companies in this sector can now opt to declare income at a prescribed rate of gross receipts instead of maintaining detailed books.

This inclusion encourages compliance among cruise operators while reducing the reporting burden.

4. Schedule BP: Raw Diamond Business Minimum Profit Reporting

Rule 10TIA has now been incorporated in Schedule BP (Business and Profession). Companies dealing in raw diamonds must report profits at a minimum of 4% of their gross turnover or receipts.

This rule aims to curb under-reporting of profits in the diamond trading and export sector by standardizing a profit threshold.

5. Enhanced Deduction Disclosure Under Section 24(b)

For companies claiming deductions for interest on borrowed capital (especially against let-out or self-occupied property), ITR-6 has introduced specific changes to capture detailed data under Section 24(b).

This includes mandatory fields for lender information, interest amounts, and whether the borrowing relates to acquisition, construction, or repairs.

6. TDS Disclosure: Section-Wise Breakdown Mandatory

In Schedule-TDS, companies must now disclose the specific section of the Income Tax Act under which the TDS was deducted. For example:

• Section 194A – Interest other than securities

• Section 194C – Payments to contractors

• Section 194J – Professional or technical services

This change enables better reconciliation with Form 26AS and reduces the risk of mismatches or tax credit denial.

Filing Timeline for ITR-6 (AY 2025–26)

Timely filing of ITR-6 is essential to avoid penalties under Sections 234F and 271F.

Key Compliance Reminders for ITR-6 Filers

• ITR-6 must be filed only through digital signature by an authorized signatory.

• All supporting schedules must be properly filled and cross-referenced.

• Ensure alignment of capital gains and TDS data with Form 26AS and AIS.

• Maintain clear working papers for all presumptive income, deductions, and audit reports.

Conclusion

ITR-6 for AY 2025–26 has undergone meaningful updates that reflect evolving business practices and stricter tax oversight. From capital gain bifurcations to sector-specific presumptive rules and enhanced reporting under Schedule BP and TDS, the form now demands greater diligence and precision.

Companies must review these changes thoroughly and prepare for early compliance. Where needed, professional support should be sought to handle the technicalities of taxation, avoid penalties, and ensure accurate disclosures.

Tax compliance isn’t just about filing—it’s about filing right. Ensure your ITR-6 reflects both your company’s obligations and its integrity by booking your ITR Filing Expert today by clicking the link below.